Vietnam and coal

Vietnam is a major coal producer for both domestic power plants and as a significant exporter to countries in the Asia Pacific region. The USGS reported that in 2009 exports of coal increased by about 29% to approximately 25 million metric tons (Mt) from 19.4 Mt in 2008. In 2007 the USGS stated that "Vietnam was a leading supplier of anthracite coal in the Asia and the Pacific region".

Coal mining
In Vietnam all coal is owned by the government. The U.S. Geological Survey (USGS) reported that in 2005 a state-owned holding company called Vietnam National Coal-Mineral Industries Group (Vinacomin) was established through the merger of Vietnam National Coal Corp. (Vinacoal), which operates all the state-owned coal mining and coal processing companies and the Vietnam National Minerals Corp. (VIMICO), which controls all stated-owned nonferrous minerals mining and processing companies. The Ministry of Natural Resources and the Environment (MONRE) administers mining activities via the Department of Geology and Minerals of Vietnam. The USGS notes that Vietnam’s coal production was estimated to have been 43,715 million tonnes in 2009, up from 39,777 million tonnes the previous year. Vinacomin was listed as having 42 million tonnes production capacity.

Proposed coal mines
In May 2009 Vinacom announced that it planned to develop the Red River Delta Coal Basin, which the USGS reports as being the "country’s largest coal deposit" covering "an area of 3,500 square kilometers" in the provinces of Hai Duong, Hai Phong, Hung Yen, Nam Dinh, and Thai Binh. Reuters reported that a government report stated that the basin contained 210 billion tonnes of coal. Vinacom stated that projects in the basin would be developed through "through cooperation and joint ventures with foreign partners". Reuters quoted a state media report which stated that "the project will create the country's biggest clean energy centre, helping ensure national energy security by 2025," it said. The report stated that Vinacomin planned to invest S$5.97 billion to develop 11 projects in the basin.

On January 17, 2010, Cavico Corporation - a major infrastructure construction, infrastructure investment, and natural resources conglomerate based in Vietnam - announced that its subsidiary, Cavico Bridge and Tunnel, had signed a construction contract to excavate a transport tunnel for Ha Long Coal, a Vietnam National Coal and Mineral Industries Group (Vinacomin) subsidiary, at its Bac Coc Sau coal mine project in Quang Ninh Province. The cost-adjustable contract is valued at approximately US$2 million.

On May 19, 2011, Cavico Corp. announced that Prime Minster Nguyen Tan Dung had approved its proposal to construct a vertical coal mine shaft in Vietnam. Vinacomin will select a site in Vietnam for Cavico to begin the midsize vertical mine shaft. Cavico will be the first domestic construction contractor to construct a vertical coal mine shaft in Vietnam, reportedly in line with the Vietnamese government's long-term strategy to shift from open pit coal mining to vertical shafts. In Quang Ninh Province, a vertical mine shaft in the region that is 1,000 feet deep and 21 feet wide is under construction by a foreign contractor, at a total investment of $40 million. The mine is expected to produce more than one million tons of coal annually.

Coal Export Infrastructure
The main Vietnamese coal export facility is at Cam Pha Port.

Proposed coal fired power stations
On June 9, 2011, Eco-Business reported the Vietnamese government planned to spend US$83 billion to build 90 power plants with a combined capacity of 106,000 MW by 2025, by which time the country’s coal demand is expected to surpass 100 million tonnes.


 * In June 2011, Hanoi-based PetroVietnam Technical Services Corporation (PTSC), a subsidiary of energy provider PetroVietnam Group, announced plans to build a "high efficiency" 1,200 megawatt (MW) Long Phu 1 Thermal Power Plant in the Long Phu District. The Long Phu 1 Thermal Power Plant will be the first of three facilities located at the planned 4,400MW Long Phu Power Centre. The plant’s two units are planned to use supercritical boiler technology and scrubbers. The plant is slated to be completed by 2014, at a cost between US$1.2 and US$1.4 billion. Global engineering firm Black & Veatch won a contract to design and manage construction of the facility.


 * On April 22, 2011, Reuters reported that a consortium of five foreign banks and Vietnam's state oil and gas group Petrovietnam had signed credit contracts worth $904 million to fund the 1,200-megawatt Vung Ang 1 Thermal Power Plant. Lenders included HSBC, China Development Bank, Bank of Tokyo-Mitsubishi UFJ, Credit Suisse and Italy's Intesa SanPaolo. The $1.6 billion plant, located in the central province of Ha Tinh, is expected to start operations in July 2012.


 * Other coal power plants that PetroVietnam subsidiary Petrovietnam Power Corporation are or have invested in are:
 * the 2,400 MW Quang Trach Power Center, comprising two 1,200 megawatt power stations;
 * the 1,200 MW Thai Binh 2 Thermal Power Plant; and
 * the 1200 megawatt Song Hau Thermal Power Plant.


 * In April 2011 it was also reported that Vietnamese state group, Vinacomin will receive a syndicated loan worth $275 million from French bank BNP Paribas and No.3 Chinese lender Bank of China for a thermal-power plant.


 * In September 2010, the National Development and Reform Commission, China's top economic planner, approved a plan by a consortium led by China Southern Power Grid Corp. to build a coal-fired power plant in southern Vietnam's Binh Thuan province. The plant will have two generators, each with an annual power generating capacity of 600,000 kilowatts. The first generator is expected to come online in 2014. The $1.75 billion project will be China's largest investment in Vietnam and Chinese banks will provide funding.


 * the Vinh Tan power station. The USGS reports that "in 2007, the Vietnamese Government authorized China Southern Grid (a Chinese electricity company) to conduct a feasibility study for a proposed 1,200-megawatt (MW) thermoelectric plant in Binh Thuan Province. Construction of the $1 billion coal-fired powerplant was expected to begin by the end of 2007."


 * the Duyen Hai Power Generation Complex is a proposed coal-fired complex in Dan Thanh commune, Duyen Hai district, Tra Vinh province. It is proposed that the complex comprise the 1245 megawatt Duyen Hai 1 Thermal Power Plant and the 1200 megawatt Duyen Hai 2 Thermal Power Plant. Electricity of Vietnam is the proponent of the Duyen Hai 1 plant with construction being undertaken by the Chinese company, Dongfang Electric Corporation. with the Vietnamese company Power Engineering Consulting Joint Stock Co (PECC2) proposing the Duyen Hai 2 power plant with assisatance from the Malaysian company Janakuasa Sdn Bhd.

Existing coal-fired power stations financed by international public investment institutions
Coal-fired power stations financed by international public investment institutions include:
 * An Hoa power station, Vietnam
 * Cam Pha power station, Vietnam
 * Hai Phong Thermal power station, Vietnam
 * Long Phu-1 power station, Vietnam
 * Mao Khe-1 power station, Vietnam
 * Mao Khe-2 power station, Vietnam
 * Mong Duong 1 power station, Vietnam
 * Mong Duong 2 power station, Vietnam
 * Nong Son power station, Vietnam
 * Son Dong power station, Vietnam

Employment in the coal mining sector
The USGS reports that Vietnamese government statistics indicate that coal mining accounted for approximately 31% or 77,486 of the 249,321 people employed in the mining and quarrying sector.

The USGS also reports that "Vietnam’s coal exports had increased five-fold since 2004 and reached a record 32.5 Mt in 2007, which excluded an estimated 10 Mt/yr of illegal coal exports. To conserve coal resources for the growing domestic coal demand for power generation, the Ministry of Industry and Trade planned to cut coal exports by 5 Mt in 2008. VINACOMIN, which, as Vietnam’s top coal producer, accounted for 95% of the national coal production, would need to reduce its coal exports by 11% to 19.5 Mt in 2008 to save more coal for domestic consumption by the cement and powerplants. Between 15 and 20 Mt of coal was provided to the domestic market and the remaining coal output was exported to China. Coal reserves, mainly located in Quang Ninh Province, were estimated to be 10.5 billion metric tons, according to VINACOMIN. The company also was investing in the Red River Delta, where exploitable coal reserves could be produced at an annual rate of between 9 and 10 Mt/yr for an unspecified period."

Related SourceWatch articles

 * Global use and production of coal
 * International Information on Coal